Borrowing capacity
You have found the house of your dreams! But will you be able to repay the loan that you will have to take out? Calculate your borrowing capacity.
- To repay a mortgage sensibly without putting a millstone round your neck, the monthly repayments should not exceed 33% of your net available income. This legal standard does not take account of other income such as the "thirteenth month" (an extra month's salary paid in some continental European countries), family allowances/credits, luncheon vouchers etc.
- The lending institution will take a number of additional factors into account, such as your occupational status, stability of employment, family situation etc. It will also include the value of the property, which it will have assessed by an approved surveyor of its own choosing.
Calculate your borrowing capacity
Borrowing capacity
